Discounts, rebates, non-compliance in contracting on fixed-term contracts… Both audit firms reported malfunctions in the management of Ephad Orpea’s private group.
Private nursing home group Orpea, in turmoil since the release of the investigative book “Les Fossoyeurs” by journalist Victor Castanet, released the first results of an external review on Tuesday confirming dysfunction, particularly in its use of public funds.
Investigations related to the period from 2019 to 2021, “It leads to the determination of the existence of discounts, rebates and rebates granted, including by suppliers of products financed from public funds”, refers to the authorized audit firms, in a progress report. They also spotted False declarations of employment accounts to the supervisory authorities. and others “The use of intermediaries, including a former wallet.”
Orpea, which is located in 23 countries and operates more than 350 institutions for dependent seniors in France, commissioned independent firms Grant Thornton and Alvarez & Marsal in February to evaluate the accusations of the book “Les Fossoyeurs” published in January 2022.
This book denounced the mistreatment of the population, the misuse of public funds, social abuses and conflicts of interest.
However, at this stage of the investigation, the two audit firms consider that they cannot. “Confirm the existence of a system that leads to systematic shortages in the provision of protection or a system of rationing on the provision of food”. ne existence “A system designed to deliberately regulate understaffing in order to improve group profits.”. Their work continues and final conclusions will be published by the end of June.
Without delay, the Orpea Board of Directors requested the Public Administration to propose to him, in “As soon as possible”, “An ambitious plan for improvement and transformation”. A government-commissioned report from the Inspectorate General of Finance (IGF) and Social Affairs (Igas), published in early April, pointed to a serious job imbalance and the government announced that it would take legal action.
Orpea also announced in a press release on Tuesday the postponement of the publication of its annual results for 2021 to May 13 and its sales for the first quarter of 2022. After these announcements, the group was subjected to harassment on the Paris Stock Exchange, and it fell by 8.27% to 31.60 euros. It has lost 64% of its value since the beginning of the year.
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